Retirement Retirement Planning

The 401(k) Decisions People in Their 80s Regret the Most

This financial wisdom will help younger generations.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Oct. 20, 2026

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Reaching age 80 is a wonderful accomplishment. Those who reach this milestone have plenty of wisdom on saving for retirement and avoiding money mistakes. Listening to some of their cautionary tales about steps they wish they'd taken financially can help younger generations learn how to stretch their retirement dollars further.

With people living longer than ever before, it's especially important to plan for retirements that can last 20 or 30 years. So, here are some of the top regrets retirees in their 80s have and what we can all learn from them.

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Many successful investors eventually reach the same moment. The saving is done, the portfolio is built, and the question quietly changes from how much can I grow this to how much can I take out? Get that second question wrong and decades of good investing can come apart in a handful of years.

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Not prioritizing their own security

It's common for parents to prioritize their children's well-being, but sometimes parents do it to their own detriment. For example, some parents help fund their children's college education but underfund their retirement accounts. However, living into your 80s and beyond costs more than people realize due to health costs, long-term care needs, housing maintenance, and more.

Many people in their 80s wish they'd invested more so they'd have more financial flexibility later in life. After all, worrying about money can be stressful and emotionally taxing, which is not something octogenarians need on top of housing decisions and health concerns.

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Underestimating health care expenses

Health care in the United States is exorbitantly expensive. A Fidelity Investments 2026 Retiree Health Care Cost Estimate found that 65-year-olds retiring in 2026 spend $185,500 on health care during retirement. Retirees with more complex or serious health problems could spend even more. Many retirees wish they had accounted for these costs and planned for them more seriously.

Plus, health care costs can spike unexpectedly. One accident, one fall, or one surgery can lead to months of rehabilitation when you're in your 80s. Stress about how to pay for this can also hurt emotional well-being and confidence, so it's important to have a financial cushion.

Making mistakes with RMDs

RMDs, or required minimum distributions, are required withdrawals that retirees must take from their 401(k)s at a certain age. The RMD age is now 73, and it will rise to 75 in 2033. Retirees who don't take a distribution by the deadline may face penalties.

Additionally, those who don't plan their distributions and how they may impact their income and tax liability may have a larger tax bill than they expect.

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Most people spend their entire working lives focusing on one thing: growing a pile of money. Then they retire and discover the skill they actually need is close to the opposite. Turning that pile into steady income, year after year, through good markets and bad, without ever running out. It may be the least discussed and most consequential transition in personal finance, and plenty of otherwise careful investors walk into it with no real plan.

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Being unprepared for emergencies

Many retirees in their 80s wish they were more prepared for the unexpected. A study from the Center for Retirement Research found that retirees spend 10% of their fixed income on unexpected emergencies.

These expenses can be especially challenging for retirees in their 80s who are drawing down their retirement accounts. A solid emergency fund can help retirees feel more prepared to manage cash flow when the unexpected happens.

Not having a withdrawal strategy

Many retirees regret not having a solid financial plan. Retirees without a withdrawal strategy, in particular, may not be using their retirement money in the most advantageous way.

Retirees can consult with a financial planner and an accountant to discuss the best ways to withdraw funds and which accounts to use first. This is especially helpful for those who have multiple types of retirement accounts, such as IRAs, 401(k)s, pensions, and HSAs.

Not investing more

Many people in their 80s regret not continuing to invest. For example, even though retirees in their 80s have to take RMDs, they can still reinvest those funds if they aren't using the money to live on. Tracking spending and living on a budget can help retirees keep growing their wealth, even as they age.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

How to get support in your 80s

If retirees need extra support with their 401(k)s and retirement strategy, consult a licensed financial planner and an accountant. It's especially helpful to have support during economic uncertainty or when the market dips. Having a professional to reassure you and advise you on the next steps can go a long way in giving retirees peace of mind.

Bottom line

Many retirees in their 80s are able to retire comfortably. However, many still regret how they prepared for retirement. Additionally, many of them underestimated their retirement costs, finding them to be more expensive than expected.

Their regrets show how important it is to take the time to plan properly for the future, especially regarding emergency funds, tax strategies, and the best way to take 401(k) withdrawals. By reading about their regrets, younger generations can better prepare for the road ahead, especially when it comes to managing cash flow and the unexpected.

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